1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lbvjy [14]
3 years ago
14

During 2022, Sheridan Company entered into the following transactions.

Business
1 answer:
malfutka [58]3 years ago
4 0

Answer with its Explanation:

Transaction 1: The purchase of equipment is increase in the fixed assets and as the amount paid is in cash, the decrease in cash asset will also be with the same amount. This means the net effect on assets will be zero.

Accounting Equation is given as under:

Fixed Assets + Current Asset  = Equity + Liability

Equipment 318,770   -  Cash $318,770  = Zero Net Effect

Transaction 2: The increase in the equity will increase the current asset as well here, which means:

Fixed Assets + Current Asset  = Equity + Liability

Current Assets + $139,050   =  Issued common stock + $139,050

Transaction 3: The purchase of inventory on account means that the current asset would be increased and the payables will increase with the same amount. The effect on the accounting equation is given as under:

Fixed Assets + Current Asset  = Equity + Liability

Current Asset + $70,94   =   Current liabilities + $70,940

You might be interested in
A year ago, you purchased 300 shares of Stellar Wood Products, Inc. stock at a price of $8.62 per share. The stock pays an annua
Galina-37 [17]

Answer:

D. -$1,116

Explanation:

Total amount of purchase = number of shares * price per share

= 300 * $8.62

= $2,586

Total dividends received = number of shares * dividend per share

= 300* $0.10

= $30

Total proceeds from sale of shares = number of shares sold  * price per share

= 300* $4.80

= $1,440

Total dollar return = (Total proceeds from sale of shares + Total dividends received - amount of purchase)

= $1,440 + $30 - $2,586

= -1,116

3 0
3 years ago
Blue Spruce Corp. uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivab
dedylja [7]

Answer:

The adjusting journal entry would be:

Debit: Bad debts expense $5,317

Credit: Allowance for Doubtful Accounts $5,317

Explanation:

Debit: Bad debts expense $5,317

Credit: Allowance for Doubtful Accounts $5,317

Explanation of the entry:

Allowance for doubtful debts at the end of the year = $402,000 × 2% = $8,040

Credit balance at the start = $2,723

Allowance for doubtful accounts = $8,040 - $2,723 = $5,317

The Allowance for Doubtful Accounts presently has a credit balance of $2,723 and allowance for doubtful debt at the end of year is $8,040, you need to enter an additional credit amount of $5,317 into the Allowance for Doubtful Accounts. The other part of this adjusting entry will be a debit of $5,317 to Bad Debts Expense.

6 0
2 years ago
Speech about peer pressure​
Semmy [17]
Peer pressure is the notion of mutual friends coxing you into a rash situation and you, in a attempt to fit in, you agree to such a situation. This is bad and it’s practically impossible to avoid unless you care not for those opinions of those you hang around

Have a peer pressure filled day (jk btw lol)
6 0
3 years ago
Suppose an institution has purchased a $250,000 mortgage loan from the loan originator and wishes to create a mortgage pass-thro
Andre45 [30]

Answer: $1,177

Explanation:

First we calculate the Monthly service fee by the formula,

Monthly servicing fee = Monthly servicing fee rate * Outstanding loan balance,

The service fee is 35 basis points which translates to 0.35 % and is an annual figure so we will adjust it to a monthly one,

= (0.35%/12) * $250,000

= $72.92

To calculate amount that passes through to the mortgage pass we do,

Mortgage pass-through amount = Monthly mortgage payment - Monthly servicing fee

= $1,250 - $72.92

= $1,177.08,

= $1,177

$1,177 is the income that will pass through to the investor in the mortgage pass through each month

6 0
3 years ago
What is the Reconstituted Firm???​
ella [17]

Explanation:

When a new partner is admitted a new agreement is formed and thus the firm is reconstituted.

8 0
2 years ago
Read 2 more answers
Other questions:
  • At the last team meeting both Shelia and Freddy showed up having erroneously accomplished the same task, which meant that one ta
    6·1 answer
  • The second step in creating a budget is to determine your income. user: the second step in creating a budget is to determine you
    9·2 answers
  • The traditional view is that the optimum level of inspection is where the
    5·1 answer
  • JG Asset Services is recommending that you invest $1,275 in a 5-year certificate of deposit (CD) that pays 3.5% interest, compou
    14·1 answer
  • Warren Enterprises had the following events during Year 1 The business issued $34,000 of common stock to its stockholders The bu
    10·1 answer
  • The human resource (HR) department of Wardund, an event management company, sent emails to all the employees of the firm, inviti
    14·1 answer
  • The aftertax cost of debt:
    12·1 answer
  • Choose the option that best matches the description given.
    7·2 answers
  • Upton Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products usin
    15·1 answer
  • What can i do after commerce 12th?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!